Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698937916796.pdf (Uganda)
38 NEW VISION, Monday, July 1, 2019 EX1t1X:i:f 1Zi:OS'f 1S•--------------------- Govt not helping housing sector with price controls a the long term investment, relative peace of the last decade has made it a viable option.

important was the Just as Government's resolve to fend off calls in the 1980s for it to institute rent controls or to discourage of payment of rent in hard currency.
The call for rent controls was because the rates were high - the aforementioned garages were being rented out for the equivalent of $200 in some places.

The politicians of the day thought this was unfair and thought they could curb the landlord's 'greed' by fiat No one has dollars, so why are you charging in dollars, they argued then.
But many landlords absentee were landlords and did not want anything the inconvertible Uganda shilling, which was being ravaged by inflation rates of up to 2400/o, so as a hedge, they asked of rent in dollars.

to do with By refusing what seemed like commonsense but disastrous the Government economics, gave the private sector the confidence that if they invested in the real estate sector they would get a fair return.
So they went out and built and as they did, rent became more manageable and the quality of housing improved.

Which corporate worker now rents a garage?

This context was clearly lost on the MPs last week when they passed provisions banning the charging of rent in dollars and capped rental increments Some landlords say since they get loans In dollars, they should charge rent In dollars at 100/o annually.

measures to were These intended rent affordable, but could well have the opposite effect.
keep Nothing good ever comes from subjecting the market to non-market forces.

Let us assume the MPs get their way and landlords can't charge in dollars and are restricted to a maximum of 100/o annual increments, the landlords react?

how will First of all, the people borrow in hard currency not because it is sexy, but because they can get lower borrowing rates and the exchange risk can be passed on to the client.
in The exchange rate has been relatively recent stable years except in 2015 when the shilling depreciated by 400/o.

So the landlords will continue to borrow in dollars, but will now raise rent every year by • When the supply Is low, the owners of the houses can set the price, but when the supply Increases, the bargaining power shifts towards the tenant.

future the required 10% as hedge against fluctuations in the currency.

This means we can expect rent to double every eight years.
The crazy thing though is that if I am a landlord in the same location, I will increase my rent like my neighbour even if I do not borrow in foreign currency.

For intending landlords they may decide that the economic gymnastics of trying to stay ahead of the dollar would be too much and decide to invest elsewhere.

So there will be slowdown in rental properties in the market and in classical supply and demand style, rent will go up everywhere as the bargaining power switches back in the landlord's favour.
What if the MPs had thrown out the proposals for landlords not to charge in hard currency and to restrict rental increments to 100/o.

What would happen?

The landlords would continue to borrow in dollars and charge in dollars.

They would build more units, increasing supply and reducing their bargaining power.

A situation would reach where landlords would to find alternative be forced hedging mechanisms against the currency fluctuations or get out of the market as tenants would resist payment in dollars.
to achieve they would use If MPs wanted their goals, for an understanding of these dynamics to keep rent low.

It is really about increasing the rate of real estate development.

legislate against They could the impediments hobbling the construction sector.

They could, Instance, mandate the Government to subsidise or take over the laying down of infrastructure in real estate developments, which costs can account to up to 500/o of the building costs.
They could capitalise the mortgage finance industry, lowering their cost of capital and, therefore, bring mortgage rates down.

They could provide other tax incentives for developers and investors in the sector as a means to increase the pool of The temptation to resort to price controls in Its various forms is always high, but it is bad economics and eventually turns out to be bad politics as well.

The fact that MPs could pass such a law tells me that they are not enough landlords in the house.
Previous laws which have gone against the producers tells me too that there are not enough producers in the house.

That means that MPs arc dominated consumers, by unwilling to make the hard decisions in favour of producers or landlords that will take this economy forward.

That is a very scary thing.

housing and bring down rents.

e pbusharlzl@newvlslon.

co.ug Twitter @pbusharlzle By Paul Busharlzl Parliament last week passed the Landlord & Tenant Bill 2018 which was first brought to the House in 2016.
While the Bill had some laudable provisions to regulate relations between landlords and their tenants - notice for eviction, security deposits and the landlord's right to access the premise - it had some potentially regressive clauses.

But first a bit of context.

Three decades ago, there was an acute shortage of housing in Kampala and the country generally.

Kampala, considered a garage In was acceptable the for accommodation corporate types of the day.
There used to be a phenomenon called "goodwill" where people paid sitting tenants to move out of their flats in Bugolobi or Bukoto and intending tenants paid for up to a year in advance to secure an apartment.

All these have changed for the better as the stock of housing has increased.

Classic supply and demand economics.

When the supply is low, the owners of the houses can set the price, but • when the supply increases, the bargaining power shifts towards the tenant.
The thanks in housing increase has been Little to government, who have barely built a thousand units in the last 30 years.

Individuals and private investors have jumped in to fill the gap, which while it is reported that there is still a deficit, it is much less than it was before.

That private sector players have jumped in to fill the gap _ did not happen by mistake.

Real estate development being MAKE RE RE P.O.


Box 7062, Kampala-Uganda C3bles "MAKUNIKA" Website: www.makerere.ac.ug UNIVERSITY Tel: +256-414·533332/533258 Fax: +256-414-4534125/4541771 E-mail arCacadreg.mak.ac.ug OFFICE OF THE ACADEMIC REGISTRAR AMmCEI 111ERIU.-WJCGllllll11111111,llf-lCIIOGI.0,- 1111111Dl08T, 11111111011 • Module Module 81.
Bakino and icing of cakes Module F1 Processing of fruit ju1CeS and beverages Module F3: Processino of fruits and veoetable sauces Module 01: Processing of voohurt Module 82.

Bakina of bread Module M2: Sausaoe Processing 11t !II I I - Dates 15' -19"' July 2019 22"' - 26" July 2019 29"' July -1 • Auoust 2019 5" - 9"' AulllL<:t 2019 12-16" August 2019 19"' • 23~ August 2019 Course Fees: Each module wdl cost UShs.

400,000 per person.

Who should apply: Youths and women, intending entrepreneurs.
graduates, students on vacation and other interested parties Venue: Training sessions will run from 8:3Dam·5:00pm every day of training at the School of Food Technology, Nutrition & Bioengineering, Makerere University main campus How to apply: Obtain application forms from the School address or website below Completed application forms & full fees should be submitted to same address not later than 5:00pm, 30" June 2019 The Secretary, School of Food Technology, Nutrition & Bioengineering, Makerere University Tel 0414 533865 E·Mail alJlQs4kasiowa@amail.com: !o.Ollt~wna!l.ac.u.o Website: b.tUlJJJ!l!tc.roalac.ugL Mobile 0789-905056/0704·438322 ~ UGANDA JOINT CHRISTIAN COUNCIL ~ •;Wllit1:ifm•-------- 1.
Uganda Joint Christian Council received Structures a One and a half year project funding from Democratic Governance Facility (DGF) to implement titled Scaling up Gender and Equity Budgeting in Local Government in Lira and Amolatar district.

The project has two outcomes namely; a) Capacity of districts and sub counties to effectively the provisions of PFMA 1n planning Implement and budgeting strengthened and b) D1str1ct and sub county development plans and budgets are gender and equity responsive.
UJCC now Intends to hire an Individual consultant or firm to carry out a gender audit aimed at prOV1ding basertne data on the degree of gender and equity respons veness In the district for two local government departments selected districts.

2.

This request seek to invite interested and qua 1fied to submit (Individual or instltut1onal) consultants the r proposa~s) comprls ng the following (a) An understand ng of the consultancy requirements.
(b) Methodology and work plar for perforrl'lng the assignment (di Relevant services 1,ndertaken In the past five(S)yea~ (e) At least 3 references from preVJOUS clients.

(f) Financial proposal showing clearly the budgeted cost for the work to be conducted by the consu tant under the scope of work above.

3.

The proposal should be hand de ivered to Uganda Joint Chnstlan Counc I Secretariat Of'ice at Plot 1554, Block 15 Gogonya Bypass - Nsambya.
P O Box 30154, Kampala, Te ephone· +256-414-580 088 and electronic copies to the following ema Is: ujcc~j«.co.ug or ~ Proposals shou d be addressed to the ex.cutive Secma,y Up,cla Joint Christlwi CouncH.
4 The terms of reference for the above assignment can be obta ned from UJCC 111ebs1te us;ng the foDowing Ink http://uj«.eo.ug/wp-content/up l*s/2019/06/ToR-call-for-pro,asals-to·con· duct-a-gender-audit-1.pdf I ' ~ Alfred Mlsl()oe N.lmollh ACADl!MIC IU!GISTltAR (c) Deta led reference lrst ind eating the scope ar,d magnitude of similar assignments.

5.

The dead!

ne for receMng app icauons ts 11th July 2019 by 17:00hrs Ent African Time